Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted its report and concluded that the Respondent benefitted additional ITC of 5.69% of the turnover, which resulted in the commensurate reduction in the base prices as well as cum-tax prices. Therefore, in terms of Section 171, the benefit of such additional ITC was required to be passed on by the Respondent No. 1 & 2 to the respective recipients. The Authority observed found no reason to differ from the detailed computation of profiteering in the DGAP's Report and further observed that the Respondent No. 1 has profiteered by an amount of Rs. 4,11,40,502/- and the Respondent No. 2 has profiteered by an amount of Rs. 2,50,94,164/- during the period of investigation i.e. 01.07.2017 to 30.09.2019, which was required to be passed on to recipients.

Held that:- The Hon’ble Anti-Profiteering Authority directed the Respondents to   pass on the profiteered amount along with the interest @ 18% per annum, within a period of 3 months. However, since the provisions of Section 171 (3A) have come into force w.e.f 01.01.2020 and the period of investigation is w.e.f. 01.07.2017 to 30.09.2019, therefore, penalty cannot be imposed on the Respondent retrospectively.